Santa Cruz Lenders

The national and Santa Cruz real estate markets are constantly fluctuating, falling somewhere between more inventory and lower prices and less inventory and higher prices. People are often frightened when the home inventory rises, but a declining real estate market may just be the perfect time to find your next home.

Here are 4 reasons why you should consider buying Santa Cruz real estate in a down market.

1. Inventory. When the market is down, more homes are for sale. This means you have more homes to choose from, which makes it easier to find a home in your dream neighborhood or closer to work or school.

2. Negotiation. There’s a reason down markets are called “buyers’ markets.” Sellers want to sell their homes, and they are often willing to do

With the many auctions here and throughout the U.S., you may be wondering if it’s worth buying Santa Cruz real estate this way. Auctions let you bid at a public sale. Some property is being sold by the owner, but most properties are foreclosures being sold by banks.

Like any endeavor, there are pros and cons in buying Santa Cruz real estate at an auction. For instance, a pro for auctions might be the price; you can often get great discounts on nice homes through an auction. However, you may get caught up in the fervor of the bidding process and pay more for a home than you ever intended.

The Condition of the Home may be QuestionableWhen you work with a real estate agent to buy a home in the traditional manner, you go through the home inspection

You may not know it, but you can take out a second mortgage on your Santa Cruz condo, if you have equity in the property. A lender may offer you a home equity loan (HEL) or a home equity line of credit (HELOC). Which one is right for you? Here are a couple of tips to help you decide:

• A home equity loan is commonly referred to as a second mortgage. Expect the process to be similar to getting your primary mortgage. Your home will have to be inspected, and you’ll need to arrange for another appraisal. Home equity loans frequently have a higher interest rate than primary mortgages because the lender is at a greater risk of you defaulting on the loan.

• The HEL can be a fixed-rate mortgage, which means that your interest rate and payments are fixed

It’s time for some tough love, here. Your home doesn’t fit in with other Santa Cruz homes for sale. It doesn’t play well with others. When you put it on the market, you priced it more than 8% higher than the other Santa Cruz homes for sale. Frankly, it’s a market bully.

Look, I understand that you want to make the most out of your investment. Maybe you’ve done some serious remodeling that you feel warrants the price hike. I’m not putting any of that down, but I’d be doing you a disservice if I let you ignore the facts.

• There is no longer a federal tax credit to entice buyers and get them interested.• Your house is competing with several foreclosures – many of which are priced as low as the lender can handle.• The longer your house sits on the market,

If you’re a homeowner who is unable to refinance to a lower interest rate because your Santa Cruz home’s value has decreased, there’s hope.

A program called the Home Affordable Refinance Program (HARP) has been extended for another year. This program, intended to help borrowers whose homes have fallen in value, was due to expire as of June, 2010. Fortunately, HARP has been extended and will now stay in effect through June 30, 2011.

How does HARP help?

The program allows qualified borrowers who owe more than their homes are worth to refinance at lower interest rates. It’s projected to help 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae and Freddie Mac.

It's true. There are a lot of parallels between buying a piece of Santa Cruz real estate and running a marathon.

The Starting Line

At first, there is excitement. The idea of buying a new home pulses in your veins and you can't wait to get started. You're like a runner in the blocks just itching to begin. Your muscles twitch in anticipation with every piece of Santa Cruz real estate you see. That's when the real adrenaline rush kicks in.

Start Out Slowly

Keep to a steady, consistent pace and you’ll make it to the finish line. There's so much to do before you can get your Santa Cruz real estate. Home appraisals, inspections and financing to apply for… You start to think about all the 'what ifs,' like what if you don't get the financing, what if

If you’re in the middle of buying Santa Cruz real estate, for which you’re hoping to get a Homebuyer Tax Credit of up to $8,000, you have more time to finalize it.

After a close brush with the deadline, Congress passed a 90-day extension of the Homebuyer Tax Credit closing deadline. The extension applies only to buyers who have written, binding contracts in place as of April 30, 2010. The new closing deadline is now September 30, 2010.

Extending the tax credit closing deadline will provide additional stability to Santa Cruz real estate and real estate markets nationwide. Additionally, the National Association of REALTORS® (NAR) estimates that this new extension will help about 180,000 to 200,000 homebuyers who already signed purchase agreements

While those who own Santa Cruz homes for sale are worried about the real estate market, some buyers are getting good deals. However, there are plenty of people on both sides of the market with a case of cold feet.

For instance, some with Santa Cruz homes for sale took them off the market. Others, who’ve thought of selling, haven’t.

The same can be said for buyers. Many potential homebuyers change their minds or still worry over that age-old question of, “Should I or shouldn’t I?”

Two Cases of Cold FeetA 26-year old with a steady job, good paycheck and good credit, sums it up for many potential buyers. “My job’s steady and my credit is good. I keep watching the houses that go up for sale, thinking I could go ahead and buy, but then the ‘what if’s’

When you look for a mortgage, you want to find one that allows you to buy the biggest house possible for a monthly payment you can afford. This seems simple enough. All you need to do is a little division to determine your monthly payment.

Unfortunately, this isn’t the entire picture of your monthly mortgage payment, and lenders don’t always explain this to you. Here are three things you need to know about your monthly mortgage payment for your new Santa Cruz home:

1. Interest and Principal. Only part of your monthly mortgage payment actually pays down your loan. A portion of your mortgage payment goes toward your loan principal and part of it pays the interest. The longer you have your loan, the more money goes toward your principal. Be aware that at

A past filing of bankruptcy does not mean you can’t buy Santa Cruz real estate. Your real estate agent may be able to help you get a mortgage or find other ways to buy a home, if you do get turned down for a traditional mortgage.

Before you meet with your Santa Cruz real estate agent, here are a few ways to prepare:

Have a copy of your current bank statement

Have written proof of your monthly income

Make a list of all your current monthly bills

Collect all your recent credit card statements

Have a copy of your bankruptcy agreement

Put all this info in a file folder and take it to your meeting. Your Santa Cruz real estate agent will appreciate you doing your homework!

If you have straightened out your credit since the bankruptcy, you are in